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Authors xviii Foreword by Dean Thomas S. Robertson and Dean Frank Brown xxv Preface xxvi PART I THE NETWORK CHALLENGE Chapter 1 The Network Imperative: Community or Contagion? 3 Paul Kleindorfer and Yoram (Jerry) Wind Chapter 2 Creating Experience: Competitive Advantage in the Age of Networks 25 C.K. Prahalad Chapter 3 Knowledge as a Social Phenomenon: "Horse Holding" and Learning in Networks 37 Alan Kantrow Chapter 4 Cross-Cultural Leadership in Networked Global Enterprises 49 Russell E. Palmer PART II FOUNDATIONS Chapter 5 Social Networks: You've Lost Control 67 Dawn Iacobucci and James M. Salter II Chapter 6 Biological Networks: Rainforests, Coral Reefs, and the Galapagos Islands 85 Sonia Kleindorfer and James G. Mitchell Chapter 7 Information Networks in the History of Life 105 Robert Giegengack and Yvette Bordeaux Chapter 8 Artificial Intelligence: How Individual Agents Add Up to a Network 125 Steven O. Kimbrough PART III INNOVATION AND COORDINATION IN NETWORKS Chapter 9 Network-Centric Innovation: Four Strategies for Tapping the Global Brain 147 Satish Nambisan and Mohan Sawhney Chapter 10 Coordination Networks in Product Development 165 Manuel E. Sosa Chapter 11 Organizational Design: Balancing Search and Stability in Strategic Decision Making 185 Jan W. Rivkin and Nicolaj Siggelkow PART IV STRATEGY AND BUSINESS MODELS Chapter 12 Complexity Theory: Making Sense of Network Effects 207 Colin Crook Chapter 13 Supply Webs: Managing, Organizing, and Capitalizing on Global Networks of Suppliers 225 Serguei Netessine Chapter 14 Leveraging Customer Networks 243 Christophe Van den Bulte and Stefan Wuyts Chapter 15 The Business Models as the Engine of Network-Based Strategies 259 Christoph Zott and Raphael Amit Chapter 16 Extended Intelligence Networks: Minding and Mining the Periphery 277 George S. Day, Paul J. H. Schoemaker, and Scott A. Snyder PART V ORGANIZING IN A NETWORKED WORLD Chapter 17 Network Orchestration: Creating and Managing Global Supply Chains Without Owning Them 299 Yoram (Jerry) Wind, Victor Fung, and William Fung Chapter 18 Managing the Hyper-Networked "Instant Messaging" Generation in the Work Force 317 Eric K. Clemons, Steve Barnett, JoAnn Magdoff, and Julia Clemons Chapter 19 Missing the Forest for the Trees: Network-Based HR Strategies 335 Valery Yakubovich and Ryan Burg Chapter 20 Relating Well: Building Capabilities for Sustaining Alliance Networks 353 Prashant Kale, Harbir Singh, and John Bell PART VI NETWORK-BASED SOURCES OF RISK AND PROFITABILITY Chapter 21 Networks in Finance 367 Franklin Allen and Ana Babus Chapter 22 The Weakest Link: Managing Risk Through Interdependent Strategies 383 Howard Kunreuther Chapter 23 Integration of Financial and Physical Networks in Global Logistics 399 Paul R. Kleindorfer and Ilias D. Visvikis Chapter 24 Telecommunications: Network Strategies for Network Industries? 417 Kevin Werbach Chapter 25 Network-Based Strategies and Competencies for Political and Social Risk Management 433 Witold J. Henisz PART VII A DOUBLE-EDGED SWORD: CONTAGION AND CONTAINMENT Chapter 26 Terrorism Networks: It Takes a Network to Beat a Network 453 Boaz Ganor Chapter 27 Global Diseases: The Role of Networks in the Spread (and Prevention) of Infection 471 J. Shin Teh and Harvey Rubin Chapter 28 Lessons from Empirical Network Analyses on Matters of Life and Death in East Africa 495 Jere R. Behrman, Hans-Peter Kohler, and Susan Cotts Watkins About the Authors 513 Index 537
Today's global enterprises face a profound dilemma: They cannot compete without networks to access resources or markets. In fact, networks are proving to be an extraordinary source of value creation: one that is permanently transforming the very nature of the organization. However, these immensely powerful networks present equally large risks - as has been proven in events ranging from China's toxic milk scandal to the United States' toxic asset collapse. In this book, more than 50 of the world's most innovative business thinkers take on the #1 challenge faced by today's large organizations: the challenge of managing and leveraging networks. Renowned Wharton Business School innovators Jerry Wind and Paul Kleindorfer have brought together 28 new essays that identify the core challenges businesses face in a networked world; reveal the business implications of emerging information-based, social, and biological networks; and guide businesses in leveraging networks for innovation. Executives will find actionable insights for optimizing organizational structure, promoting internal and external coordination, mitigating risk, and -- above all -- increasing long-term profitability. They will find indispensable knowledge for managing everything from supply chains to social networks, leadership to strategy, IT to terrorism and infectious disease. This book won't just transform the way business leaders think about networks: it will transform the way they build, use, and profit from them.
Paul R. Kleindorfer is the Paul Dubrule Professor of Sustainable Development and Distinguished Research Professor at INSEAD, Fontainebleau, and the Anheuser Busch Professor of Management Science (Emeritus) at the Wharton School of the University of Pennsylvania. Dr. Kleindorfer graduated with distinction from the U. S. Naval Academy in 1961. He studied on a Fulbright Fellowship in Mathematics at the University of Tubingen, Germany (1964/65), followed by doctoral studies in the Graduate School of Industrial Administration at Carnegie Mellon University (PhD,1970). Before joining INSEAD in 2006, Dr. Kleindorfer held university appointments at Carnegie Mellon University (l968/9), Massachusetts Institute of Technology (1969/72), and The Wharton School (1973-2006). Dr. Kleindorfer's research has focused on risk management, ranging from major accident prevention to hedging and trading to mitigate supply and demand coordination risks. His current research is on sustainable operations for energy-intensive companies and carbon-leveraged investments arising from legislation and regulations to mitigate presumed consequences of industrial activity on the biosphere and climate. Yoram (Jerry) Wind is The Lauder Professor and Professor of Marketing at the Wharton School of the University of Pennsylvania. He joined the Wharton faculty in 1967, with a doctorate from Stanford University. He is founding director of The SEI Center for Advanced Studies in Management, the founding academic director of The Wharton Fellows Program, and was the founding editor of Wharton School Publishing. From 1995 to 1997 he led the development of the Wharton globalization strategy. Dr. Wind led the reinvention of the Wharton MBA curriculum (1991-93) and the creation of the Wharton Executive MBA Program (1974). Dr. Wind was founding director of the Joseph H. Lauder Institute (1983-1988) and the Wharton International Forum (1987). He has served in editorial positions for many top marketing journals. He has published more than 250 papers and articles and more than 20 books. Dr. Wind is a member of the advisory boards for various entrepreneurial ventures and a trustee of the Philadelphia Museum of Art. Dr. Wind's major marketing awards include The Buck Weaver Award (2007), The Charles Coolidge Parlin Award (1985), AMA/Irwin Distinguished Educator Award (1993), the Paul D. Converse Award (1996), and the Elsevier Science Distinguished Scholar Award of the Society of Marketing Advances (2003). Dr. Wind is the former Chancellor of the International Academy of Management. He is co-founder of the Interdisciplinary Center, Herzliya (IDC) and chair of its academic council and university appointment and promotion committee. He received a PhD from Stanford University.
"We're entering an age of networked intelligence. The Network Challenge marshals a cast of savvy thinkers and practitioners to tackle a broad range of the fascinating and important unanswered questions. Completely stimulating." --Don Tapscott, author of 13 books about networks in business and society, including Wikinomics and most recently,Grown Up Digital.